May 12 (Bloomberg) -- U.S. Senate Democrats are trying to
pass more than $80 billion in tax reductions. Their obstacles
include Republican plans to cut even more.

As soon as tomorrow, the Senate will begin procedural votes
on reviving dozens of tax breaks that lapsed Dec. 31 and
extending them through 2015. The package would let companies
such as General Electric Co. defer U.S. taxes on overseas
financing income and reinstate the production tax credit for
wind energy.

Republicans support most of the breaks, which aren’t paired
with spending cuts or tax increases. The Senate Finance
Committee approved the bill in a bipartisan vote last month.

Still, the Senate floor votes are Republicans’ opportunity
to make changes. Though they’re in the minority, their strategy
matters because at least five Republicans are needed to join
Democrats on votes to advance the bill. If Republicans unite and
insist on considering amendments, they can block the bill.

The number of Republicans needed could rise if some
Democrats object to the lack of offsets in the measure, meaning
it would increase the federal budget deficit by $84.1 billion
over the next decade. Republicans are insisting on offsetting
Democrats’ proposed extension of expanded unemployment benefits.

Also in the package are an extension of the research and
development tax credit, the ability for individuals to deduct
state sales taxes and the 50 percent bonus depreciation for
capital investments.

Health Law

Possible Republican amendments include repeal of the excise
tax on medical devices, other changes to taxes imposed by the
2010 health care law and proposals to end tax subsidies for
energy, said a Senate Republican aide, speaking on condition of
anonymity to discuss plans that haven’t been finalized.

Disputes over amendments have been snarling the Senate, as
Republicans in the minority complain about their inability to
shape legislation and Democrats respond.

Today, that squabble risks scuttling an energy-efficiency
bill.

“Republican obstruction is bringing the Senate to its
knees again and again,” Senate Majority Leader Harry Reid, a
Nevada Democrat, said today.

There will be lots of talk about possible amendments and
the tax bill will pass unchanged by the end of the month, said a
Senate Democratic aide who isn’t authorized to speak publicly.

Even if the Senate passes the tax bill, its fate is far
from certain in the Republican-controlled House.

Research Credit

House lawmakers have taken a different approach, breaking
out individual tax provisions and offering proposals to make
them permanent. The first such bill, on the research credit,
passed the House 274-131 on May 9 with 62 Democrats joining
Republicans to support the measure.

House leaders also object to some of the tax breaks,
particularly those for renewable energy.

When looking at how generous wind and solar tax credits
are, “you’ve really got to scratch your head,” House Speaker
John Boehner, an Ohio Republican, said today in a speech in San
Antonio.

Groups supporting the Senate bill include Americans for Tax
Reform, led by anti-tax activist Grover Norquist.

“Warts and all, the Senate should pass the tax extenders
bill,” the group said in a statement today. “Ideally, the best
of these tax relief items would be made permanent law, and the
rest would be plowed into pro-growth tax reform. For now,
though, the mandate for the Senate is clear: do no harm.”